My Lords, this amendment, like the last one, is about more than public expenditure control, important though that is. It is, as my noble friend has just emphasised, about flexibility. Why is there an essential need for flexibility? Because the fundamental views about the relationship between ODA, development and the eradication of poverty are changing fundamentally all the time—and certainly will change radically over a five-year period.
The worry of many of us who have worked for years in development and overseas aid issues—almost half a century in my case—is that the promotion and thinking behind this Bill, and behind the reluctance to have more flexibility, is blind to the entirely new thinking that has been developed in the OECD and other areas about the way in which development assistance should be contributed by the richer countries of the world. The concept of what is called “country programmable aid” has now been introduced. This is generally recognised to be a far more effective measure and a real contribution to aid from richer to poorer countries than the old ODA definition. The other very powerful new tool that has come along is impact investment, which would not be included under ODA at all because there is no grant element in it, and it would have to have a grant element to be ODA.
It is sad that we should be ignoring flexibility and insisting on a rigidity that will exclude development of the most effective new instruments for the eradication of poverty and for helping poor people and development processes throughout the world. That is why this amendment, like the last one, would give flexibility and help in our aid efforts and not hinder them.